Wales is set to face a fresh round of spending cuts in order to direct more funds towards its struggling health service. Business rates for pubs, shops, and restaurants will be increased as part of Welsh Labour’s budget for the next 12 months from April. The discount of rate relief, which was previously at 75% has been reduced to 40%. Meanwhile, the country’s spending on rural affairs has been hit, and the department responsible for transport, housing, and climate change is also seeing a reduction.
Although health spending is set to increase, it will be below the rate of inflation. The Welsh government has stated that it is unable to cover the rising costs of wages in education and health due to insufficient funds received from the UK government. The government has released a statement saying that it will prioritize front-line services like the NHS and councils, which could mean other sectors are affected.
Despite the government’s effort to focus funding on essential services, many have criticized the reductions, which includes Plaid Cymru who have said “everything possible must be done” to safeguard public services. Prior to the announcement, the Welsh Conservatives accused the government of wasting millions on vanity projects such as increasing the number of politicians.
The decrease in rate relief for businesses will affect pubs, restaurants, and shops who have been struggling due to the pandemic. The Welsh government has said that the reduction was not intended to continue indefinitely and that companies should not have been reliant on the discount. The reduction brings Wales in line with the rest of the UK, as the discount in England is already at 40%.
These difficult decisions were not taken lightly, according to Finance Minister, Rebecca Evans who said: “We have had to take some really difficult decisions to radically redesign our spending plans to focus funding on the services which matter most to the people of Wales.” The new budget comes on top of the cuts announced in October in support of the NHS and the Transport for Wales
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